Again, Finance Minister Allays Fears on FG’s Borrowing

The Minister of Finance, Mrs. Zainab Ahmed, has again allayed
fears over federal government’s borrowings, declaring that there
was no cause for alarm as the borrowings still remain within the
fiscal threshold.

The minister spoke in Lagos at the Deloitte Economic Outlook
conference, where she presented a paper titled: ‘Revenue Growth and
Economic Development: Expectations for 2019’.

According to a statement issued by the minister’s media aide,
Paul Ella Abechi, she explained: “We have been very strategic in
the management of our debts, revenues, infrastructure, and human
capital. These plans and the tighter coordination, monitoring
within and among Ministries, Department and Agencies (MDAs) with
economic functions have placed us on a positive trajectory. We
intend to maintain a steady course. Our borrowing is still within
very good fiscal limits.

“Global trends reveal slowdown in global economic growth
exacerbated by global risks. Despite these trends and pursuant to
our policies in the Economic Recovery Growth Plan, we have seen the
economy exit from recession and move the economy upwards on a path
of sustainable, inclusive & diversified growth.”

Although she acknowledged that the problem was that of revenue,
the minister noted that by prioritising revenue generation, the
federal government intends to continue significant investments in
human capital and critical infrastructure to sustain the growth
trajectory.

The minister maintained that the nation’s revenue has been
growing successfully based on government’s policies and programmes
initiated to ensure that revenue generation base is
diversified.

“Historical performance analysis show that we are succeeding in
growing our revenue. We have chosen to be strategic in our response
and we recently launched the Strategic Revenue Growth Initiatives
to achieve sustainability in revenue generation; identify new and
enhance enforcement of existing revenue streams; and achieve
cohesion of people and tools.

“Our targeted revenue to GDP ratio is 15 per cent as set out in
the Economic Recovery Growth Plan.

“We will continue investing in the ERGP implementation by
leveraging finance for critical infrastructure and our social
investment programmes. These investments, we believe, will
guarantee a sustainable future.

“In 2019 and in line with the Economic Recovery and Growth Plan
(ERGP) 2017– 2020, we will continue to invest resources in
achieving our fiscal priorities which are: Enhancing Revenue
Generation, Collection and Monitoring; Fiscal Consolidation by
Optimising Priority Capital and Recurrent Expenditure; Optimising
Management of both Domestic and
Global Fiscal Risks; and Increased Coordination of Fiscal,
Macroeconomic, Monetary and Trade Policies,” she said.

But she noted that there was the need to do more to achieve high
revenue generation.

“We still need to do more to achieve higher revenue outturn as
peer comparison on our ability to convert Gross Domestic Product
(GDP) to revenue for capital and social investment show that we
have a lot to do,” she stated.

Patience Jonathan Forfeits N1bn by Court
Order

The Economic and Financial Crimes Commission, EFCC, has secured
an interim forfeiture of the sum of N1,000,494,000 (One Billion,
Four Hundred and Ninety Four Thousand Naira) only lodged in three
deposits with Fidelity Bank Plc on 20th and 25th May, 2015.

The forfeiture order by Federal High Court sitting in Kano and
presided over by Justice A. Lewis-Allagoa is consequent upon a
motion ex parte filed by the Commission seeking for the interim
forfeiture of the money, which was found in the Bank account of
Magel Resort Limited, a company linked to the former First Lady of
Nigeria, Patience Jonathan.

The Commission had gotten an intel that a bank account domiciled
in Fidelity Bank, had a huge sum of money that was not being used
by anybody.

Upon receipt of the intelligence, the EFCC swung into action by
conducting preliminary investigation, which revealed that Patience
and some relatives of former president, Goodluck Jonathan were
directors of the Company. Others named as directors are Oba Oba
Tamunotonye, Goodluck Jonathan Aruera, Goodluck Jonathan Ariwabai
and Esther Fynface.

In trying to trace the origin of the money, it was discovered
that N500,000 was deposited on the 20th of May, 2015 by Fynface,
who is alleged to be in charge of the Company, while N1 billion
(One Billion Naira Only) was transferred in two tranches on the
25th May, 2015 from PAGMAT OIL AND GAS NIGERIA LIMITED a company
that was not incorporated with the Corporate Affairs
Commission.

Ruling on the motion, Justice A. Lewis-Allagoa held that: “An
interim forfeiture order is granted to the Federal Government in
the sum of N1,000,494,000 (One Billion, Four Hundred and Ninety
Four Thousand Naira Only) in the Bank account of the 1st respondent
Magel Resort Limited 4011019546 which is maintained with 2nd
respondent Fidelity Bank Plc”.

The court further ordered that the forfeited sum be deposited in
the Treasury Single Account of the Federal Government.

Tony Orilade
Ag. Head, Media & Publicity